The Forward- and the Equity-Premium Puzzles: Two Symptoms of the Same Illness?

We build a pricing kernel using only US domestic assets data and checkwhether it accounts for foreign markets stylized facts that escape consumptionbased models. By interpreting our stochastic discount factor as the projection ofa pricing kernel from a fully specified model in the space of returns, our results indicatethat a model that accounts for the behavior of domestic assets goes a longway toward accounting for the behavior of foreign assets. We address predictabilityissues associated with the forward premium puzzle by: i) using instrumentsthat are known to forecast excess returns in the moments restrictions associatedwith Euler equations, and; ii) by pricing Lustig and Verdelhan (2007)'s foreigncurrency portfolios. Our results indicate that the relevant state variables that explainforeign-currency market asset prices are also the driving forces behind U.S.domestic assets behavior.

The forward- and the equity-premium puzzles: two symptoms of the same illness?

Using information on US domestic financial data only, we build a stochastic discountfactor—SDF— and check whether it accounts for foreign markets stylized factsthat escape consumption based models. By interpreting our SDF as the projection ofa pricing kernel from a fully specified model in the space of returns, our results indicatethat a model that accounts for the behavior of domestic assets goes a long waytoward accounting for the behavior of foreign assets prices. We address predictabilityissues associated with the forward premium puzzle by: i) using instruments that areknown to forecast excess returns in the moments restrictions associated with Eulerequations, and; ii) by pricing Lustig and Verdelhan (2007)’s foreign currency portfolios.Our results indicate that the relevant state variables that explain foreign-currencymarket asset prices are also the driving forces behind U.S. domestic assets behavior.

Editors’ note

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Topology and Dynamics in Complex Networks: The Role of Edge Reciprocity

A key issue in complex systems regards the relationship between topology and dynamics. In this work, we use a recently introduced network property known as steering coefficient as a means to approach this issue with respect to different directed complex network systems under varying dynamics. Theoretical and real-world networks are considered, and the influences of reciprocity and average degree on the steering coefficient are quantified. A number of interesting results are reported that can assist the design of complex systems exhibiting larger or smaller relationships between topology and dynamics

Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups

We consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopoly and oligopoly, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating the model may exhibit heteroclinic orbits connecting multiple equi¬libria. Small transitory changes in parameters can lead to large permanent effects and there can be a Rostovian poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. The paper applies recent results from applied math¬ematics for non-smooth dynamic systems

What happens when water evaporates? An inquiry activity with primary school children

This paper is the result of a pedagogical intervention project carried out in a primary school. The intervention took place in a 4th grade class (n=24) and involved an inquiry-based approach to the teaching of the curricular topic “water phase changes”. The project employed an action research methodology whose main goals were: a) to promote inquiry-based science teaching; b) to describe and analyse the process of the construction of meanings in relation to the phenomena under study, and c) to evaluate the learning acquired by the students. At the end of each lesson, a class diary was prepared - a descriptive and reflective narrative compiled from the field notes and audio recordings made during participant observation in the classroom. It was one of these class diaries that served as basis for this article, which describes and analyses the process of scientific meaning construction occurred in the classroom, around the phenomenon of "water evaporation". The results of the assessment on the learning acquired show that the vast majority of students developed an atomistic model to explain the phenomenon of water evaporation, in which liquid water turns into small, invisible particles (water vapour), which become part of the air around us. This model is consistent with the notion of conservation of matter.info:eu-repo/semantics/publishedVersio

Demand, Supply and Markup Fluctuations

The cyclical behavior of markups is at the center of macroeconomic debate on the origins of business-cycle fluctuations and policy effectiveness. In theory, markups may fluctuate endogenously with the business cycle due to sluggish price adjustment or to deeper motives affecting the price-elasticity of demand faced by individual producers. In this article we make use of a large Örm- and product-level panel of Portuguese manufacturing Örms in the 2004-2010 period. The biggest empirical challenge is to separate supply (TFP) from demand shocks. Our dataset allows to do so, by containing information on product-level prices at a yearly frequency. Furthermore, markups are mismeasured when calculated with the labor share. We use the share of intermediate inputs instead. Our main results suggest that markups are pro-cyclical with TFP shocks and generally counter-cyclical with demand shocks. We also show how markups become procyclical if the markup is obtained using the labour share instead of intermediate inputs. Adjustment costs create a wedge between the labour share and the actual markup which explain the observed correlations.N/

Assessing radiobiological effects of diagnostic level doses of ionizing radiation on zebrafish using comet assay

This paper relates with the application of zebrafish – Danio rerio – to the study of radiobiological effects of medical diagnostic level – low doses – of ionizing radiation. In recent years, the use of zebrafish has grown considerably, pointing more and more as a very interesting model in biomedical research, essentially because of the level of homology shared with the human genome, complemented by an easy and reasonably affordable practical side

Demand, supply and markup fluctuations

Markup cyclicality has been central for debating policy effectiveness and understanding business cycle fluctuations. However, there are two empirical challenges: separating supply (TFP) from demand shocks, and properly measuring the markups. In this article, we use a panel of Portuguese manufacturing firms for 2004-2014. Since it contains information on product- level prices, we can separate supply from demand shocks. We overcome the markup measurement by using the share of intermediate inputs on revenues, instead of the labor share. Our results suggest that markups are pro-cyclical with TFP shocks, and counter-cyclical with demand shocks. We also show that labor-based markups are pro-cyclical.info:eu-repo/semantics/publishedVersio